Facing market manipulation allegations, Binance CEO Changpeng Zhao refuted claims and asserted that BNB’s price is determined by the market, not manipulation. Despite BNB’s drop to a yearly low of $214, he attributed this to industry-wide volatility.
Over time, BNB’s price has been tumultuous due to negative rumors surrounding Binance. Notably, in June 2023, the US Securities and Exchange Commission (SEC) declared Binance Coin (BNB) and Binance USD (BUSD) as securities, accusing Binance of unregistered securities trading.
Despite the exchange’s opposition, demand for BNB remained heavily affected. Binance bolstered its launchpool and launchpad projects to sustain BNB’s value.
However, markets don’t always follow predictions. After stability, Bitcoin (BTC) suddenly plummeted to $26,000, causing substantial market volatility. BNB also felt the impact, falling to $218—lower than the October 2022 attack on BNB Chain.
As of now, BNB trades around $216, slightly recovering from the $214 low. Nonetheless, BNB’s outlook remains challenged.
Besides market-wide volatility, BNB’s decline also relates to reduced daily trading volume on the Binance Smart Chain. DeFi activities notably dropped, with weekly trading volume decreasing from $24.7 billion to $2.34 billion, according to DeFillama. The total asset value on the network also plummeted by 87%, to $2.84 billion.
On August 19th, Binance CEO Changpeng Zhao reassured the community, affirming that the market dictates BNB’s price and there’s no manipulation. However, this isn’t the first time Binance faced allegations of price intervention. In June, CZ refuted claims that the exchange sold Bitcoin to protect the BNB token.